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Bullboard - Stock Discussion Forum Euro Sun Mining Inc T.ESM

Alternate Symbol(s):  CPNFF

Euro Sun Mining Inc. is a Canada-based mining company. The Company is focused on the exploration and development of its 100%-owned Rovina Valley gold and copper project located in west-central Romania. The Company holds the Rovina Valley Project through a mining license which covers a total of 27.68 square kilometers (km2). The Rovina Valley Project consists of three copper-gold porphyry... see more

TSX:ESM - Post Discussion

Euro Sun Mining Inc > ESM cash burn
View:
Post by sweepy on Dec 30, 2020 1:35am

ESM cash burn

Procuda, we all know that you are fixated on the manipulation of this stock using Coinman's data and you have a valid concern. But this manipulation will not force the company into bankruptcy. Excessive cash burn might.
 
Do you remember Carpathian Gold and the Riacho dos Machados gold mine? If not, look it up. Poor management and excessive cash burn in Brazil forced the company into insolvency that resulted in it being taken over by ESM in 2016, at $0.07 a share or $1.27 after consolidation. A share is currently worth $0.31 having lost 80% in value. 
 
Since that time, Scott Moore being CEO and President of ESM, has burned through roughly $50 million of private placement cash diluting shareholders 315% to a total capitalization of 169 million shares outstanding. All this cash burn has paid for two accomplishments only; the mining licence in 2018 and a higher ore recovery study. The 2019 PEA can be thrown into the garbage since it was done incorrectly without the inclusion of the Rovina open pit sequentially to the Colnic open pit.
 
Beyond these accomplishments, 10's of millions of dollars have been squandered away on management contracts and bonuses to Scott Moore and until recently Stan Bharti, $10,000 in monthly rent in Bucharest and 10’s of thousands of dollars in interest expense on it, ridiculous amounts of adminisrative and travel expenses, millions of dollars of losses in poor investments like Vilhelmina Minerals, etc. And the Stanija property is gone and up for auction. How much higher would the share price be right now if this squandered cash was in the company bank account instead?
 
The other difference is that nothing can be done about the manipulation of the stock. IIROC needs to change rules. On the other hand, shareholders can change the CEO and the Board of Directors if they take the effort to do it. But it must be a team effort.

The danger is that Scott Moore's cash burn will drive this company into insolvency before it is able to generate cash. It appears that he doesn't care and is attempting to profit as much as possible personnally before that happens. Anybody know if he is alive or dead?
Comment by Phipster99 on Dec 30, 2020 8:59am
Where did you hear this?? The Stanija property is gone and up for auction.
Comment by procuda on Dec 30, 2020 9:53am
The constant manipulation of the sp lower has cost us dearly on having to pay more for the private placements and of course the dilution of shares. Like I said cash burn is a concern but if our sp was not so ridiculously manipulated down dilution would also not be as high as it know stands.
Comment by sweepy on Dec 30, 2020 12:32pm
Only the IIROC can do something about junior mining stock manipulation but it is not accountable to anybody. It is a national self-regulatory organization that does not report any of its investigations or findings to the public. How have your dealings with them been going so far? Good luck trying to get any help from them.   Secondly, yesterday you “noticed something new. Now 80 is ...more  
Comment by procuda on Dec 30, 2020 3:17pm
Thanks for clarifying sweepy. I guess I never saw them before. As far as iiroc is concerned the fact that so far the transactions between national and royal have subsided with national being the seller and royal being the buyer,maybe all the info I gave iiroc did do something. You are correct when you say iiroc is not answerable to anyone, this does not instill much confidence in them.
Comment by facbien on Dec 30, 2020 12:38pm
I can only assume that someone who has been here for years defending stan and fm nonstop and going out of there way to destroy any constructive conversation has to be on the pay role. Hey maybe that is why we don’t have a media relations person.  The fact is other than normal stock market action (ESM isn’t special ie targeted for manipulation by some mysterious evil group) the only ...more  
Comment by LondonMustang on Dec 30, 2020 3:52pm
What you don't say is that Eurosun management got rid of Forbes & Manhatten 6 months ago and brought in new directors to help move the project forward. Also, the last private placement was lead by Sprott Capital and was overprescibed by 6 million shares at $.39. I don't think Eric Sprott who owns 1.1 million shares himself would associate his name and company with a firm he didn't ...more  
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